INTEGRATED MARKETING COMMUNICATION

Advertising
Module III
Definition, Importance and Scope; Types of Advertising (Online
& Offline); Advertising Planning and Objective; Budgeting;
Creative Strategy, Tactics and Format, Advertising Appeals,
Advertising Execution Styles, Advertising campaigns; Ad Agency
Functions; Types of Ad Agencies; Selection and Compensation of
Ad Agencies; Advertising Research; Role of Ad Agencies and
other Marketing Communication organizations, Client Agency
Relationship; Advertising Management: Preparation and Choice
of Methods of Advertising Budget.
What is Advertising?
 Any form of nonpersonal presentation and promotion of
ideas, goods, or services by an identified sponsor.
 Mass in nature and uses different media to persuade people
 Advertising is used by:
– Business firms,
– Nonprofit organizations,
– Professionals,
– Social Agencies.
Participants in Advertising

Client Ad Agency
Society Competition
Target
Media
Audience
Importance of Advertising
For the Consumer
Awareness of products and brands
Compare the offerings
Get news, cheaply – without advertising media can’t
survive
Entertainment – sponsorship and by itself!
Sometimes even get products at reduced price – economies
of scale/competition!
Importance of Advertising
For the Company
Help increase sale through awareness and persuasion
– In present area
– In new areas
– Through new product launch
Improve image/goodwill – image building and reminder
advertising
Helps understand and track competition
For the Society
Creates employment
Helps in promoting social causes
Improve standard of living
Function/Scope of Advertising
 Awareness about a new product
 Explain functioning and uses of a product
 Rectifying the false impressions, minimising fears of faults,
altering perceptions
 Informing any changes - in price, new features
 Building goodwill for the brand
 Persuading customers to buy product/switch brands
 Persuading the customers to be receptive for sales calls
 Reminding the customers about the product, especially
seasonal ones
 Details of purchase location
 Source salespeople/channel partners
 Support the channel partners
Types of Advertising
 Product vs. Institutional(Corporate) vs Retail
 National vs. Local
 Direct response/DM
 Primary vs. selective/Competitive
 Online Advertising vs Offline Advertising
 Cooperative advertising
 Commercial vs Non commercial
 Commercial Advertising Includes
– Business to Business advertising
– Trade advertising
– Professional advertising
Types of Advertising: based on objectives

Informative/Awareness
Informative/Awareness Persuasive
PersuasiveAdvertising
Advertising
Advertising
Advertising Build
BuildSelective
SelectiveDemand
Demand
Build
BuildPrimary
PrimaryDemand
Demand

Comparison Reminder
ReminderAdvertising
Advertising
ComparisonAdvertising
Advertising Keeps
KeepsConsumers
ConsumersThinking
Thinking
Compares
ComparesOne
OneBrand
Brandto
toAnother
Another About
AboutaaProduct.
Product.

It can also be image building advertising to increase goodwill of

the company – especially at the maturity stage of the PLC
5 Ms of Advertising
 Defining the 5 Ms of
Advertising is a very good
advertising planning
method
 Mission is the objective,
money the budget,
message the creative,
measure is the evaluation
part and media the
different ways to reach
the audience/the
different touch points
Major Decisions in Advertising

Objectives
ObjectivesSetting
Setting

Budget
BudgetDecisions
Decisions

Message
MessageDecisions
Decisions Media
MediaDecisions
Decisions

Campaign
CampaignEvaluation
Evaluation
Setting Objectives
• Advertising objective is different from marketing
objective. Marketing objective maybe to increase sales,
the advertising objective for that objective could be to
increase walk ins.
• Advertising Objectives have to be SMART
• Specific Communication Task
• Return on Investment has to be specified and
Measurable
• It has to be Attainable – Advertising and Marketing
objectives should not be confused
• Accomplished with a Specific Target Audience – it has
to be Relevant
• During a Specific Period of Time
DAGMAR Model
 DAGMAR Approach is a model developed by Russell H Colley
for setting advertising objectives and measuring the results
for an advertising campaign
 The full form of DAGMAR is Defined Advertising Goals for
Measuring Advertising Results

Awareness Comprehension Conviction Action

– Advertising Objectives should be stated in specific and
measurable communication tasks
– It must specify a Target Audience
– It must set a standard or benchmark and specify the
desired change against which results can be measured
– It must specify a time period for achieving the objectives
Setting the Advertising Budget
Advertising Budget Methods: Affordable, Percentage of Sales,
Competitive-Parity and Objective-and-Task

Product
Product Stage
Stagein
inthe
theProduct
Product
Differentiation
Differentiation Life
LifeCycle
Cycle

Factors in
Advertising
Advertising
Setting the Market
Market
Frequency
Frequency Advertising Share
Share
Budget

Competition
Competition
and
andClutter
Clutter
Advertising Strategy
• Advertising strategy is basically divided into two –
Creative Strategy and Media Strategy
• Creative/Message Strategy is all about What has to be
communicated and How it has to be communicated.
• It involves the copy (content) part taken care of by the
copywriter as well as the graphics part taken care of by
the art director/visualiser
• Media strategy is about When and Where the advertisers
message has to be communicated to the target audience
• And both these within the restraints of the budget at the
agency’s disposal
 Advertising Strategy:
Creating Advertising Messages
Plan
PlanaaMessage
MessageStrategy
Strategy
General
GeneralMessage
Messageto
toBe
BeCommunicated
Communicatedto toCustomers
Customers

Develop
DevelopaaMessage
Message
Focus
Focuson
onCustomer
CustomerBenefitsBenefits
Tell
Tellwhat
whatisisininititfor
forthem
them Creative
CreativeConcept
Concept
“Big
“BigIdea”
Idea”
Visualization
Visualizationor
orPhrase Advertising
Combination
Phrase AdvertisingAppeals
Appeals
Combination ofBoth
of Both Meaningful
Meaningful
Believable
Believable
Distinctive
Distinctive

Attention
Attention Interest
Interest Desire
Desire Action
Action
Advertising Strategy: Message Execution
Turning the “Big Idea” Into an Actual Ad to Capture the Target
Market’s Attention and Interest.

Testimonial
Testimonial Slice
Sliceof
ofLife
Life
Evidence
Evidence
Scientific
Scientific
Evidence
Typical
Typical Lifestyle
Lifestyle
Evidence
Message
Message
Technical
Technical Execution
Execution Fantasy
Fantasy
Expertise
Expertise Styles
Styles
Personality
Personality Mood
Moodoror
Symbol
Symbol Image
Image

Musical
Musical
Advertising Appeals
• Advertising appeals can be classified as
• Rational or logical appeal speaks of reason why the TA
should buy/do something
• Emotional appeal uses emotions and feelings which can
be positive like warmth (Rasna), romance (textile/
jewellery), humour (Fevicol) or negative like fear
(Insurance) or envy (Onida)
• It can also be moral appeal as in advertising for social
causes like Charities
• Appeals can be direct where the ad tells the TA what to
do upfront or indirect or subliminal where the message is
more subtle. Generally only subtle messages work for
changing attitudes
 Formats
• When a brochure or a Point of Purchase/Sales (POP/POS)
element like a poster or dangler is created it is called a
design
• On the other hand for a newspaper or magazine ad the
initial draft is called a layout, because there are a number
of elements like the headline, image, body copy, logo
and tagline that are laid out in a particular way.
• The layout will be in the RGB format. When it is made
into a final printable format which is CMYK format with
the right specs it is called an Artwork.
• For TV ads the concept note comes first when an idea is
presented. This then is made into a treatment note
where the scenes are fleshed out
• Finally you have a storyboard and a script or a scratch TV
commercial which is created from movie and TVC
clippings, which is shown to the client and cleared
Ad Layout
 Brochure Design

A basic design may not have the actual words. Only Lorem Ipsum.
And dummy pictures. Artwork will have the final images and words
Design vs Artwork

Design
Artwork
 Radio Script
Storyboard Mother and Daughter
Daughter - Aammaa en classelay ellurum
A story board shows the scenes kekuranga nekaga mattum samaikupodi
in the TVC epidi avaloo naala eruguthu - magic
madiri
Mother - Bujjimaa, ennuk epoo kaikalill
magic eruku
Daughter - Nejuma magic aah aamma
Mother - Bakers odaey Masala erukum
podu kaikaluley magic theneay

Voice over: Aama da bakersn magic,

uneka eny venum ennu kellu - chat
masala, panner thika, chilli chicken, chilli
gobi ellay fish fry ,
ellamey bakers en magickalay naan uneku
paanitharuven noodielay.

Bakers - Magic ungal kaille

Advertising Strategy: Selecting Media

Step
Step1.
1. Decide
Decideon
onReach,
Reach,Frequency,
Frequency,
and
andImpact
Impact
Step
Step2.
2. Choosing
ChoosingAmong
AmongMajor
MajorMedia
MediaTypes
Types
Media
MediaHabits
Habitsof
ofTarget
TargetConsumers
Consumers
Nature
Natureof
ofthe
theProduct
Product
Type
Typeof
ofMessage
Message
Cost
Cost
Step
Step3.
3. Selecting
SelectingSpecific
SpecificMedia
MediaVehicles
Vehicles
Specific
SpecificMedia
MediaWithin
WithinaaGiven
GivenType,
Type,i.e.
i.e.Magazines.
Magazines.
Must
MustBalance
BalanceMedia
MediaCost
CostAgainst
AgainstMedia
MediaFactors:
Factors:
Audience
AudienceQuality
Quality&&Attention,
Attention,Editorial
EditorialQuality
Quality

Step
Step4.
4. Deciding
Decidingon
onMedia
MediaTiming
Timing
Scheduling
Schedulingof
ofAdvertising
AdvertisingOver
Overthe
theCourse
CourseofofaaYear
Year
Pattern of Ads: Continuity or Pulsing
Pattern of Ads: Continuity or Pulsing
Advertising Evaluation

Advertising
AdvertisingProgram
ProgramEvaluation
Evaluation

Communication
CommunicationEffects
Effects Sales
SalesEffects
Effects
IsIsthe
theAd
AdCommunicating
CommunicatingWell?
Well? IsIsthe
theAd
AdIncreasing
IncreasingSales?
Sales?
Ad campaigns
 Ad campaigns are a series of ads of a client which has the
same objective and is similar in looks which is given one
after the other maybe in the same media vehicle.
 Ad
campaigns
Ways to Handle Advertising

Sales Advertising
AdvertisingDepartments
SalesDepartments
Departmentsin
in Departments
Small in
inLarger
LargerCompanies
SmallCompanies
Companies Companies

Advertising
AdvertisingAgency
Agency
Firm
Firmthat
thatAssists
AssistsCompanies
Companies
ininPlanning,
Planning,Preparing,
Preparing,
Implementing
Implementingandand
Evaluating Their
Evaluating Their
Advertising
Advertising
Programs.
Programs.
Advertising Agency Types
 Full-service ad agencies are made up of a team of experts, and they’re a
one-stop shop of services: (Answer for Ad Agency Functions)
– They create Press/Magazine Ad Campaigns
– They do Strategic Planning for clients
– Create concept, plan and coordinate TV Commercial shoot
– Do Graphic Design for collaterals like POPs & media planning and buying
– Conceptualise and help produce Radio Commercials
– Do SEO/Social Media Management/Digital Marketing
– Help in Lead Nurturing
– Content Creation for Digital/Other communication
– Provide creative and Coordinate for Web Development
– Coordinate for Sales Promotion, PR/Publicity and Direct Marketing
 When to use: A full-service ad agency is appropriate if your business needs
the full-stack of marketing. They’ll be able to deliver results through a TV ad
as well as a social media campaign. Because their marketing activities are so
comprehensive, you’ll also want an employee who can devote a lot of their
time to working with this agency.
Advertising Agency Types
 Traditional ad agencies primarily work with traditional forms of media,
such as newspapers, television commercials, radio, and print.
 When to use: Traditional ad agencies are best suited towards companies
who are trying to reach a local audience. A strategic direct mail campaign
for a local restaurant or a billboard promoting the opening day of a new
museum can be an effective use of traditional forms of media.
 Creative boutiques focus on the design and graphics of a brand, but
outsource the strategy and execution to other marketing partners. They
usually excel in logo design, print marketing, letterheads, billboards, and
business cards.
 When to use: These types of agencies are well suited for organizations who
need to create a cohesive look and feel of their brand or who need to
create some new marketing collateral.
 Media buying houses focuses on media planning and media buying, and
they usually tailor their services to a specific channel. They identify a time
frame, recommend a budget, and establish markets for reaching the target
audience.
Advertising Agency Types
 When to use: Media buying agencies are great for organizations looking to only
use a single channel. These agencies may have a creative team in-house, but
they are typically most effective when paired with a creative ad agency.
 A digital advertising agency specializes in all things online. Their primary focus
lies in the digital sphere, including:
– Search Engine Optimization (SEO)
– Social Media Marketing
– Website Design and Development
– Lead Generation
– Email Marketing
– Account Based Marketing
– Marketing Automation
 When to use: Digital ad agencies are best for reaching a very specific audience
as digital marketing platforms allows for advanced targeting capabilities and
wide reach. They are also a good fit for companies looking to improve their
online presence and generate more leads through their website. These
agencies tend to have a mix of graphic designers, web developers, copywriters,
ad specialists, photographers, and videographers.
Advertising Agency Types
 Social media ad agencies focuses on only social media. They are a team of
content creators and ad optimizers that will max out your social channels.
They may focus on many social channels or be experts in a single channel,
such as LinkedIn.
 When to use: Social media agencies are a good fit for companies who are
looking to accomplish a single goal, such as selling skateboards, through
social media platforms. These marketing agencies usually have a creative
team, a content team, and might even have photographers and
videographers.
 PR agencies serve to improve and manage the public image of a company
and its employees. PR agencies are often used for enterprise-level
companies and CEOs, focusing on getting the company or the CEO featured
in the news, on industry websites, and in the community.
 When to use: PR agencies are best for organizations looking to improve the
public’s awareness of the brand or their public image. PR agencies are
especially important for brands that are frequently in the public view
because they help manage the public’s impression of the organization or
its leader.
Advertising Agency Decision
When you are selecting an ad agency:
Decide on one that is suited for you and your advertising
objectives
Select one that is on your wavelength- check their previous work
Where is the agency situated?
Are they experienced in working on similar categories?
Who are their main people?
What budgets do they work on?
Is strong financially and sound ethically
Is not restricted to any one media
Gives ROI – ads that are relevant, original and impactful
Advertising Agency Compensation
 Can work on
– Commission- where media is involved
– Retainer Fee – for pure creatives
 The commission is
– Usually 15%
– Less for media houses/agency on account
– Mark up for Production – 850 + 15%
– Markdown for Media – 1000-150
Deciding on agency

 Finding agencies from Publication/Channel

 Shortlisting agency
 Briefing agency
 Multi agency pitch
– Credential
– Marketing strategy
 Promotional strategy

– Creative Strategy
– Media Strategy
Advertising Research
Media Research
Custom vs Syndicated IRS/NRS
Copy Testing
Pre test vs Post Test
Communication vs Sales Effect
Pre test
Consumer Jury – Personal/Focus Group
Rating Scales – Evaluate elements
Portfolio Tests – Dummy ads
Psychological Tests – Thematic Apperception Tests (TAT)
Physiological Tests – Mechanical tests
Field Experiment – Theatre tests…
Advertising Research
Mechanical devices
Pupillometer
Eye camera
Galvanometer – sweating etc
Tachitoscope – show image for a small amount of time
Electroencephalography (EEG)
Peoplemeter – for media studies
Advertising Research
Post test
Sales Test
Day – after recall
– Top of mind recall
– Unaided recall
– Aided recall
– Understanding

Brand Test/Equity
Awareness
Association
Loyalty
Perceived Quality
Client – Agency Relation
 Both client and agency has to be on the same wavelength
 It is like a doctor patient relationship. Only if client gives all the
details the agency can do a good work.
 How good and comprehensive is the brief from the client
decides how good the creative is.
 Agency should consistently update themselves on the clients
business and industry.
 They should constantly do market scanning and give regular
relevant inputs to the clients on the marketing environment
 Agency shall have different creative teams work on the
account periodically to keep the creative fresh and different.
 Both have to be open and ethical with each other, especially in
terms of agency payments
Setting the Advertising Budget

Statistical
StatisticalMethods
Methods
Setting the Advertising Budget
 Affordable: Is what you can afford. But it can’t be zero.
Even if you are new in the market you need a basic
amount of awareness advertising. Channel members will
also demand it to place your product
 Percentage of Sales: Can also be percentage of profit.
Percentage of sales work conversely – how much is
required to achieve that amount of sales in the coming
year? So it is based on future forecasted sales. Percentage
of profit is past year profit.
Setting the Advertising Budget
 Objective and task: Money needed for achieving a set
objective or a particular task. For example selling 12 flats
in a 42 unit apartment complex.
 Objective could also be based on Reach vs Frequency. Ie
how much money will be required for the ad to reach
required number of people/TA or how much OTS
(opportunity to see) the ad should be given to the TA.
 Comparative Parity: We have to get competition data from
syndicated studies done by agencies like AC Nielsen and
ORG Marg.
 The rate card figures of competitive advertising budgets
can be got from these studies which can be normalised as
actual figures will be much less since the channels and
newspapers give package rates to their clients